Mondelez To Enter China’s Chocolate Market

Thursday, August 4th, 2016 | 1469 Views

US company Mondelez is entering China’s US$2.8-billion chocolate market with its Milka brand in September this year. The brand will hit Chinese shelves with more than a dozen core products, alongside special editions created for seasonal occasions.

Mondelez, one of the world’s largest confectionary companies, has a wide portfolio of brands including Cadbury Dairy Milk, Côte d’Or, Lacta and Toblerone.

Tim Cofer, Mondelez’s chief growth officer sees a huge potential in the Chinese market: “We see enormous potential for the growth of the chocolate category in China, where consumption today is low—even by emerging market standards.”

China’s per-capita consumption of chocolate is 100g annually, compared with 8kg for the UK, 1.6kg for Brazil and 5kg for Russia, Mr Cofer said.

“The notion of indulgence and pleasure, such as chocolate, ice cream, cookies, is underdeveloped in broader snacking in China, but is one that is poised for significant growth,” Mr Cofer pointed out. “Chinese consumers continue to seek out chocolate as a way to treat themselves and also as an expression of thanks and gifts.”

“We’ve been operating in China for over 30 years so we know this market and what it takes to launch a business here,” said Stephen Maher, President, Mondelez China.

The introduction of Milka comes on the back of research that suggested Chinese consumers would appreciate the taste, according to Mr Cofer.